US GOVERNMENT DEDUCTS MEDICARE PREMIUMS FROM ELDERLY POOR, STUDY SAYS

ByUnited Press InternationalJune 18, 1991

WASHINGTON
— The federal government continues to deduct an estimated $800 million in Medicare premiums annually from some 2 million elderly poor exempt from the charges, an advocacy group said yesterday. Families USA Foundation charged in a report that $29.90 in monthly charges, or $380 annually, are "wrongfully" deducted from the Social Security checks of an estimated 2 million elderly people living below the poverty line, despite a change in budget rules last fall that protected them from the charges.

The foundation said last year's budget agreement exempted older Americans living below the poverty line from paying out-of-pocket expenses for Medicare, the federally funded health-care program for the elderly.

Four million people qualify for protection from out-of-pocket Medicare expenses, but fewer than half receive the benefit, the foundation said in its report, "The Secret Benefit."

To be eligible, single seniors must have annual incomes below $6,620 and assets totaling less than $4,000. Elderly couples qualify with annual incomes below $8,880 and assets totaling less than $6,000.

The foundation says the government should inform the elderly of their rights by inserting a note explaining the benefits in the next round of Social Security checks.

Families USA Foundation describes itself as a nonprofit advocacy group working for economically vulnerable seniors and their families.